Thursday, January 31, 2013

Apple trades approximately 22.1 million shares on an average
day at the exchange, but yesterday volume fell by 27% and the company traded
only 14,887,300 shares. At noon Apple’s volume was showing only 4,750,000
shares, which means that if the pace remains the same, shares will only swap
hands somewhere near 12 million times. This is yet another area the company
seems to be bleeding.

While some investors may feel that lower volume is a
positive sign, as it would seem that people have slacked off in selling their
shares of the tech giant, other analysts and investors may feel differently.
Lower volume could mean that buyers have failed to step up to the plate and
purchase a company they feel could lose value in the coming quarter. The latter
could be true, although Apple is trading at a major low compared to its
September high.

This could be a good time for Apple management to reconsider
the possibility of a stock split. Tim Cook notably called such a move stupid,
but it’s possible he should reconsider his view in light of recent trading
activity. Apple is in desperate need of new investor money and a stock split
would bring an influx of fresh investors with much needed capital.

Salesforce.com Inc. (CRM) recently took the plunge and has
asked for shareholders to approve a 4 for 1 stock split. This will make shares
more affordable and attractive to a wider group of investors. This also will
increase trading liquidity for common shares and make employee equity awards
more attractive, according to Salesforce reports.

Apple Inc. (AAPL) may need to take note of the positive side
of a split and consider making shares available to more people. Shares are
currently trading at $455.52, which is $1.31 down from its opening price this
morning and volume is at 5,607,507 as of 1:05 PM.